Economic Study: one of the axes of the feasibility study of a project

Before launching your project, do a feasibility study.

This study should cover different aspects: commercial feasibility or market study, technical feasibility or technical study, financial feasibility or financial study, economic feasibility or economic study.

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The subject of this article is the aspect of economic feasibility or economic study.

Summary

1st component of the economic study: The economic context of the country

2nd component of the economic study: The economic contribution of the project

3rd component of the economic study: The social impact of the project

The economic feasibility must relate to  the economic context of the host country of the project, the economic contribution of the project  and  the social impact of the project.

Let's take a  closer look at each of these components.

1st component of the economic study: The economic context of the country

One of the first axes to be developed is the economic context of the host country of the project.

Indeed, certain characteristics of the economic system can constitute strong constraints for the project and must be identified upstream:

•  The type of economic system;
•  The general state of the economy;
  
• The level of inflation;
  
• The level of unemployment;
  
• The balance of payments;
  
• The level of government debt;
  
• The State's budgetary situation;
• Tax policy;
• Monetary policy;
  
• The level of taxation in force;
  
• Customs measures in force;
  
• The investment code in force.
• 2nd component of the economic study:  The economic contribution of the project

A study must then be carried out to assess the contribution of the project to the economy.

 In fact, it is often necessary to complete the study, and in particular for projects requesting State aid, by analyzing the macroeconomic point of view, that is to say from a point of view. broader view, that of the entire community in which the project must fit.

In this context, it will therefore be a question, beyond the objective of maximizing profits for the company, to evaluate the contribution of the project to the achievement of other measurable and non-measurable objectives of interest to the whole community, c 'that is to say:

• all the agents of the community:
  
• creation of added value;
  
• distribution of added value;
  
• creation of currencies;
  
• job creation ;
  
• improvement of public finances;
• territory Development ;
  
• etc.

3rd component of the economic study:  The social impact of the project

The social context should also be considered, to ensure that the project is feasible in this context. Ask yourself the following questions:

• What are the foreseeable social impacts of the project?
  
• Is the project in line with the dominant values ​​of the company?
  
• Will the project favor certain social groups to the detriment of others?
• Or will the project be fair?
  
• Will the project help correct social inequalities?
  
• Is the project likely to provoke or aggravate a conflict? Or on the contrary likely to pacify a situation?

With this economic feasibility study you will be able to complete your business plan which is an essential step for the start of a project.

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